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A mortgage balance of $28,000 is to be repaid over a 12-year term by equal monthly payments at 8.2% compounded semi-annually. At the request of
A mortgage balance of $28,000 is to be repaid over a 12-year term by equal monthly payments at 8.2% compounded semi-annually. At the request of the mortgagor, the monthly
payments were set at $450.
(a) | How many payments will the mortgagor have to make? |
(b) | What is the size of the last payment? |
(c) | Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the total actual amount paid. |
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